A study of Energy listed Companies in the
United States, Malaysia, and Hong Kong
FEATURED PAPER
By Dr. Teck Lim Chia
Malaysia
Abstract
This dissertation examines the relationship between Environmental, Social, and Governance (ESG) methods and the financial performance of publicly traded energy companies in the United States, Malaysia, and Hong Kong. There is a limited understanding of ESG issues among listed energy companies in these regions, and there is a lack of research exploring the potential differences and similarities in the relationship between ESG and firm performance and value across these diverse markets. To increase awareness of sustainable development, examining whether a company’s commitment to ESG translates into tangible financial and market performance benefits is crucial to determine whether a relationship exists between a company’s ESG disclosures and its financial performance, as measured by Return of Assets (ROA) and firm value (Tobin’s Q).
The research uses quantitative analysis and examines secondary data from LSEG ESG Scores for ESG ratings and Investing.com for financial data, encompassing a sample of 218 energy-listed companies. The study investigates seven hypotheses, exploring the correlations between environmental, social, and governance scores with overall ESG performance and the impact of ESG on Return on Assets (ROA) and firm value (Tobin’s Q).
The key findings suggest that strong ESG performance positively correlates with higher firm value, measured by Tobin’s Q, in all regions. It implies that investors perceive companies with robust ESG practices as having stronger growth prospects and lower risk profiles.
However, no significant relationship was found between ESG scores and Return on Assets (ROA). It suggests that the link between ESG and profitability might be more nuanced. It could depend on factors like the specific ESG initiatives implemented and the time it takes for their financial benefits to materialize.
The research also reveals that individual ESG factors, such as environmental and social scores, influence overall ESG performance across different regions. For instance, companies listed in Hong Kong (HKEX) have the highest average environmental responsibility scores compared to the other three places. Kuala Lumpur Stock Exchange (KLSE) demonstrated higher average social responsibility scores than other regions, indicating potential regional differences in investor expectations or regulatory pressures. In addition, the study includes case studies of three energy companies, which provide insights into how they view and implement ESG.
The research provides several recommendations for companies, policymakers, and stakeholders and includes case studies that offer insights into how companies implement ESG practices.
In conclusion, the study highlights the growing importance of ESG in driving firm value within the energy sector. However, further research is needed to fully understand the complex relationship between ESG and profitability, particularly over a longer timeframe and in a broader range of industries. The study offers suggestions for future research directions.
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Editor’s note: Dissertation submitted to the Faculty of the University of Management and Technology to partially fulfill the Requirement for a Degree of Doctor of Business Administration, 9 February 2025. Dissertation Directed by Dr. Carey Cheung.
How to cite this work: Chia, T. L. (2025). Relationship between Environmental, Social, and Governance (ESG) Management and Corporate Performance: A study of Energy listed Companies in the United States, Malaysia, and Hong Kong, Dissertation in support of a Doctor of Business Administration degree, University of Management and Technology, Virginia, USA, published in the PM World Journal, Vol. XIV, Issue VI, June. Available online at https://pmworldlibrary.net/wp-content/uploads/2025/06/pmwj153-Jun2025-Chia-Relationship-between-ESG-Management-and-Corporate-Performance-a-Study-Dissertation-2.pdf
About the Author
Dr. Teck Lim Chia
Malaysia
Dr. Teck Lim Chia is Chairman and CEO of CBL International Ltd, Banle Group, Malaysia, Hong Kong, Singapore and Ireland. He is a visionary executive with 20 years of transformative leadership in global energy and maritime sectors, blending deep expertise in bunker trading, corporate governance, and ESG innovation. Proven architect of sustainable growth strategies, having built a $500M+ revenue, Nasdaq-listed enterprise (CBL International) while pioneering Asia’s low-carbon fuel transition. DBA-qualified strategist adept at aligning complex supply chains with global sustainability mandates, reducing operational risks, and driving investor confidence through ESG-integrated governance.
Areas of Expertise
- Global Bunker Trading & Logistics: Strategic fuel procurement, IMO 2020 compliance, multi-continent supply chain optimization, and biofuel market development.
- ESG & Regulatory Leadership: IMO/EU regulatory alignment, Scope 3 emissions management, sustainability auditing, and ethical supply chain design.
- Sustainable Energy Innovation: B24 biofuel adoption, and emission reduction technologies for maritime decarbonization.
- Corporate Strategy & Growth: IPO execution, cross-regional P&L management, capital market navigation, and investor relations excellence.
- Stakeholder Collaboration: Partnering with regulators, shipping giants, and communities to bridge profitability and planetary responsibility.
Dr. Chia was awarded a Doctor of Business Administration degree from the University of Management and Technology, Virginia, USA in 2025.
